UK has most number of $1bn-plus tech start-ups in Europe

Britain has the highest number of tech start-ups with a valuation of $1bn (£637m, €888m) or more in Europe, as London cements its position as the digital capital of the continent.

The UK currently has 17 such tech start-ups, known as "unicorns", while Europe has a total of 40 start-ups, according to new research by investment bank GP Bullhound. In the UK, seven of the unicorns were formed during the last 12 months.

The British start-ups have a cumulative value of more than $40bn, and they mostly comprise of firms in the fintech sector, which is being helped by London's unique position in global finance. A Fintech business uses software to provide financial services.

"The UK has raced ahead as the undisputed home of unicorns in Europe, with London producing the vast majority of Britain's billion-dollar tech companies," said Manish Madhvani, managing partner at GP Bullhound.

"Growth is accelerating because we have created an environment capable of sustaining high levels of investment across a range of tech sectors."

A separate study by Ernst and Young found that 1,000 "international tech investment projects" based themselves in London between 2005 and 2014 – the highest in Europe. In comparison, just 281 firms selected Paris and 162 firms selected Dublin.

Britain has launched Tech City, an industry group backing tech start-ups, in London in 2010. The group functions as Britain's equivalent of Silicon Valley.